Monster Beverage Corp (MNST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 54.04% | 53.77% | 53.73% | 53.45% | 53.14% | 52.58% | 52.16% | 50.77% | 50.30% | 50.74% | 51.81% | 54.51% | 56.10% | 57.06% | 57.86% | 58.61% | 59.23% | 59.82% | 59.92% | 59.82% |
| Operating profit margin | 25.76% | 26.76% | 27.26% | 27.39% | 27.36% | 27.64% | 27.22% | 25.73% | 25.11% | 25.76% | 27.12% | 30.65% | 32.44% | 33.63% | 34.98% | 35.19% | 35.51% | 35.02% | 34.47% | 33.74% |
| Pretax margin | 26.55% | 27.71% | 29.26% | 29.27% | 28.97% | 29.06% | 27.65% | 25.84% | 24.91% | 25.67% | 26.95% | 30.61% | 32.51% | 33.57% | 34.87% | 35.01% | 35.36% | 34.99% | 34.62% | 34.00% |
| Net profit margin | 20.14% | 21.66% | 22.84% | 22.83% | 22.84% | 22.62% | 21.45% | 19.95% | 18.88% | 19.46% | 20.40% | 23.32% | 24.86% | 28.76% | 29.88% | 30.25% | 30.65% | 26.99% | 26.56% | 26.06% |
The profitability ratios of Monster Beverage Corp have shown some fluctuations over the past few years.
1. Gross Profit Margin: The trend in the gross profit margin has been gradually declining from 59.82% in March 2020 to 54.04% in December 2024. This indicates that the company's cost of goods sold relative to its revenue has been increasing over time.
2. Operating Profit Margin: The operating profit margin started at 33.74% in March 2020, peaked at 35.51% in December 2020, and then steadily declined to 25.76% by December 2024. This shows that the company's operating expenses have been growing faster than its operating income.
3. Pretax Margin: The pretax margin has followed a similar pattern to the operating profit margin, starting at 34.00% in March 2020, reaching a peak of 35.36% in December 2020, and then dropping to 26.55% by December 2024. This suggests that the company's profitability before taxes has been diminishing over the years.
4. Net Profit Margin: The net profit margin has also experienced a downward trend, declining from 26.06% in March 2020 to 20.14% by December 2024. This indicates that Monster Beverage Corp's bottom line profitability has been impacted by factors such as increasing expenses relative to revenue.
Overall, the declining trend in profitability margins signals challenges for Monster Beverage Corp in maintaining its profitability levels and may require strategic adjustments to improve operational efficiency and cost management.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.01% | 24.62% | 24.98% | 19.91% | 20.17% | 20.55% | 19.66% | 18.89% | 19.11% | 19.54% | 19.94% | 21.77% | 23.03% | 23.99% | 25.47% | 25.75% | 26.33% | 27.17% | 28.59% | 29.84% |
| Return on assets (ROA) | 19.55% | 19.93% | 20.93% | 16.59% | 16.84% | 16.81% | 15.50% | 14.64% | 14.37% | 14.76% | 15.00% | 16.57% | 17.65% | 20.51% | 21.75% | 22.13% | 22.73% | 20.94% | 22.03% | 23.05% |
| Return on total capital | 32.66% | 34.87% | 34.87% | 23.80% | 24.10% | 24.26% | 22.95% | 22.07% | 21.84% | 22.88% | 23.37% | 25.47% | 26.89% | 28.01% | 30.07% | 30.58% | 31.64% | 33.44% | 35.17% | 37.63% |
| Return on equity (ROE) | 25.33% | 27.78% | 28.76% | 19.53% | 19.82% | 19.89% | 18.30% | 17.51% | 16.96% | 17.77% | 18.01% | 19.75% | 20.98% | 24.47% | 26.05% | 26.49% | 27.31% | 25.77% | 27.10% | 29.07% |
Monster Beverage Corp's profitability ratios have shown mixed trends over the past few years.
- Operating Return on Assets (Operating ROA) has decreased from 29.84% in March 2020 to 19.11% in December 2022 before showing a slight increase to 25.01% by December 2024. This ratio indicates the company's ability to generate operating profits from its assets, and the decreasing trend suggests a potential efficiency challenge.
- Return on Assets (ROA) has fluctuated, peaking at 22.73% in December 2020, dropping to 14.37% by December 2022, and then recovering to 19.55% by December 2024. This ratio reflects the company's ability to generate profits from its total assets, and the varied trend indicates some volatility in asset utilization.
- Return on Total Capital decreased from 37.63% in March 2020 to 21.84% by December 2022 before rising to 32.66% by December 2024. This ratio assesses the return earned on all capital, including debt and equity, and the fluctuating trend suggests changes in the company's capital structure and profitability.
- Return on Equity (ROE) has shown a similar pattern, declining from 29.07% in March 2020 to 16.96% by December 2022, and then increasing to 25.33% by December 2024. ROE reflects the return earned on shareholder equity, and the fluctuating trend may indicate changes in financial leverage or operational efficiency.
Overall, while there have been fluctuations in Monster Beverage Corp's profitability ratios, the recent improvements in some ratios suggest a potential turnaround in profitability and efficiency. Monitoring these ratios over time can provide insights into the company's financial health and performance.